The Dow Jones Industrial Average fell 140 points Monday following Friday's strong stock market rally. Among the early market leaders, Tesla stock climbed after an analyst upgrade, while Netflix and Spotify also gained on upgrades in the final trading day of January.
Among the Dow Jones leaders, Apple rose 0.9% Monday, while Microsoft lost 0.1% in today's stock market. American Express is one of the top Dow Jones stocks to watch, as it forms the right side of a new base. Chevron traded down hardest on the Dow, off 0.6% after a downgrade from Truist.
Tesla surged more than 5% Monday after Credit Suisse upgraded the stock ahead of the market open.
Among Monday's top stocks to watch, American International Group, Baker Hughes, CF Industries and Matson are near new buy zones. Keep in mind the current stock market status cautions investors to remain on the sidelines.
Microsoft and Tesla are IBD Leaderboard stocks. CF Industries was Friday's New America stock.
Dow Jones Today
After the stock market open Monday, the Dow Jones Industrial Average slid 0.4%, while the S&P 500 moved up 0.1%. The tech-heavy Nasdaq composite rose 0.9% in morning trade. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 0.9%, and the SPDR S&P 500 ETF moved up 0.1%.
The 10-year Treasury yield ticked up above 1.8% Monday morning. On Friday, the 10-year Treasury yield fell for a second straight day, closing just above 1.78%. Oil prices climbed again, sending West Texas Intermediate 0.9% higher, to just below $88 a barrel — and right at a seven-year high.
Stock Market Eyes Rebound
Despite Friday's strong gains, the market has yet to confirm a new uptrend, so investors should still continue to wait for a follow-through day. Follow-through days occur when a major index posts strong gains in volume heavier than the prior day. A follow-through day could occur any day, so make sure your watchlists are primed with top stocks, though strong merchandise is lacking.
Friday's The Big Picture commented: "The Nasdaq composite surged 3.1% and closed just above Thursday's high. But the powerful gain fell short of a follow-through day because Nasdaq volume came in lower than Thursday. Breadth wasn't great on the Nasdaq, with winners beating losers by less than 2-to-1."
Amid the current stock market volatility, now is an important time to keep close tabs on IBD's The Big Picture.
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard.
Investors also can create watch lists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Stocks On The Move: Netflix, Spotify
Netflix and Spotify were up 6.8% and 5.4%, respectively, early Monday after Citi upgraded both stocks from neutral to buy. Meanwhile, Edward Jones upgraded Netflix from hold to buy.
NFLX stock finished Friday about 45% off its 52-week high, while SPOT shares are 55% from their old highs.
Dow Jones Stocks To Watch: American Express
American Express decisively regained its 10-week moving average last week with an 11.5% advance. AXP shares are moving up the right side of a new base that currently has a 189.13 buy point, according to IBD MarketSmith chart analysis. Be on the lookout for a potential handle to offer a more risk-optimal entry. Shares fell 0.5% Monday.
Bullishly, the stock's relative strength line is just shy of new highs following last week's sharp ascent. A strong RS line, particularly during a weak overall market, indicates American Express is a stock to watch.
Three Top Growth Stocks To Watch In The Current Stock Market Weakness
Stocks To Watch: AIG, Baker, CF Industries, Matson
Insurer AIG rose 1% Friday, closing just above its 50-day moving average. AIG shares are forming a cup-with-handle base with a 62.35 buy point, according to IBD MarketSmith chart analysis. AIG was IBD's Stock Of The Day on Jan. 19. The stock fell 1% Monday.
Oilfield equipment leader Baker Hughes is further below a 27.76 cup-base buy point after Friday's 0.5% fall. Shares of the Houston-based outfit dipped 1% Monday.
Fertilizer producer CF Industries continues to trace an ascending base with a 74.87 buy point. Bullishly, the stock's RS line hit a new high last week, indicating strong stock market outperformance. CF stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The stock is about 5% away from the latest buy point. CF shares were down 1% Monday. Learn more about what's driving investor interest in CF Industries in IBD's New America.
IBD Leaderboard stock Matson is making progress above a cup-with-handle buy point of 93.27 following Friday's 4.9% advance. Shares are now slightly extended beyond the 5% buy range that tops out at 97.84. Its RS line hit a new high on the breakout, a bullish sign. Shares were down 0.8% Monday morning. Learn about Matson's markets and competition in IBD's Industry Snapshot.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock rallied over 5% Monday, looking to add to Friday's 2.1% climb. Early Monday, Credit Suisse upgraded the stock from neutral to outperform with an unchanged price target of 1,025. Last week, the stock is at its lowest level since Oct. 11 and is trying to find support at its long-term 200-day moving average line.
The stock traded as high as 1,243.49 on Nov. 4, but ended Friday about 32% off that 52-week high.
Dow Jones Leaders: Apple Earnings, Microsoft
Among Dow Jones stocks, Apple stock surged 7% Friday, it's strongest single-day advance since July 2020. The gain snapped an eight-day losing streak, regaining the stock's key 50-day moving average. Shares rose 0.9% Monday.
Software leader Microsoft gained 2.8% Friday, closing further above its long-term 200-day moving average line. MSFT shares were down 0.1% in morning trade.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
